Economic Update  [ PDF ] 4Q11 GDP – Domestic demand acts as an insulator - by Heng Guie LEE

The Malaysian economy is confirmed to be on a slowing trend as real GDP growth eased to 5.2% yoy in 4Q11 (5.8% in 3Q11), dragged down by weak exports. Although domestic demand acted as a buffer, there was some let-up in the growth of consumer spending and private investment. Amid some glimmer of hope for the US economy and the on-going debt saga in the eurozone, we expect a continuation of uneven growth in 1H12 before momentum picks up steam in 2H12.